by Hayden Groves – REIWA President https://reiwa.com.au/
One of the biggest pain-points for property managers, tenants and landlords when dealing with disagreements arising from residential property management is delays in the court process.
REIWA has long been an advocate for streamlining this process and finding ways to make dealing with the courts more efficient for all parties involved.
When the 2018-19 State Budget was handed down on May 10, it was a big win for the WA property industry when the Treasurer Ben Wyatt MLA announced the WA Government would be adding two new magistrates to the Magistrates Court.
These two new magistrates (as well as two additional support staff) will be funded at a cost of $4.2 million over 2018-19 to 2021-22. The WA Government stated this would address current and emerging demand pressures in the court.
While the majority of residential tenancy agreements conclude with landlords and tenants parting ways amicably, when things do go wrong, a fair and efficient court system is essential to ensure fair outcomes are reached for all parties.
For too long, both landlords and tenants have suffered through lengthy delays in the court process, causing financial hardship and undue stress for all parties involved.
The additional two magistrates will cost the state, but this cost will be offset by an increase in court and tribunal fees by 7.5% in 2018-19. The increase in court costs to cover the additional magistrates is a necessary evil and something the real estate industry is willing to pay, if it means residential cases are seen to and resolved sooner.
Both landlords and tenants are set to benefit from this budget win. For landlords, many face financial hardship when tenants fail to pay rent, and lengthy court delays can leave them thousands of dollars out of pocket, as tenants are often three or four months in arrears before a resolution can be made in the court.
For tenants, it means getting your bond money (usually the equivalent of four weeks rent) back quickly, something that has previously caused undue stress, as tenants must front up a bond for a new property before having received their old bond money back.
REIWA is pleased the WA Government is taking steps to help improve the process. It is essential the two new magistrates dedicate adequate time to seeing residential cases and ensure the private rental market remains a viable option for both landlords and tenants.